Miners reducing selling pressure propels Bitcoin towards $50k.
The price of BTC surged past $47,661 on February 9th, indicating that the highly anticipated fourth Bitcoin halving event, set to occur in 70 days, may lead to further bullish activity.
Recent data trends suggest that Bitcoin miners and strategic investors are shifting their focus to the upcoming halving event, which could explain the recent price increase.
Miners have reduced their selling pressure by 25%, as observed on February 2nd to 8th, resulting in a positive impact on the asset’s price. This reduction in selling pressure decreases the number of newly mined tokens, thus reducing market supply. Additionally, it signifies the miners’ confidence in the short-term price prospects of Bitcoin, potentially influencing other stakeholders to adopt a bullish stance.
The decline in the miners’ selling trend since October 2023 has coincided with a significant rally in Bitcoin’s price, reaching a peak of around $48,000. This bullish pattern suggests that Bitcoin holders can expect further price increases as the halving event approaches.
In terms of short-term price action, Bitcoin faces significant resistance at the $48,500 level. A breakout above this key resistance level could pave the way for a milestone upswing above $50,000 for the first time since 2021. However, if the price dips below $40,000, it could invalidate this optimistic prediction. In such a scenario, investors who acquired BTC at a minimum price of $42,672 may make frantic purchases to cover their positions, potentially triggering an instant rebound.
Overall, the data trends indicate that the upcoming halving event is driving the upward trajectory of Bitcoin’s price. Whether the bulls can capitalize on this momentum boost and reclaim $50,000 remains to be seen.
Source: CoinMarketCap, CryptoQuant, IntoTheBlock
